Why you should file your taxes ASAP

By Ari Page

Now that 2014 is upon us, it will be tax season before you know it. Getting your income taxes filed early is always a good idea, if for no other reason than the great feeling you get when it’s over. But there are other, more tangible, reasons that can have a positive effect on your bottom line, according to this US News article.

For example, if you’re a taxpayer with a college-age student, having your taxes done early is a big help in getting financial aid. If you’re divorced (or in the process of one), filing first can give you the upper hand in some cases, in some things in which you and the other party don’t agree.

There are other practical reasons as well. For example, starting early will give you lots of time to retrieve paperwork you don’t have or can’t find. It also gives you time to catch any potential mistakes or omissions you’d have made if you waited until the last minute. Additionally, the quicker you file your tax return, the less likely you’ll be a victim of identity theft.

Finally, perhaps the most obvious reason: If you are getting a return, you’ll be among the first to have that money in your pocket. But even if you know you’re going to owe money, there isn't any financial advantage to waiting until the eleventh hour to file – and you’ll never need to worry about filing for an extension. It also makes sense to know how much you owe as soon as possible so you can plan accordingly.

The bottom line? The longer you wait, the more stressful the tax filing process becomes!